The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-20
THE BIG WHISKY DEAL.

THE BIG WHISKY DEAL.
Western DistilIers Unite with a Capital of
$4,000, OOO-A Monster Combination.
New York Mail and Express.
One of the most stupendous schemes ever
undertaken in this country, now interesting the
handlers of WHISTLES in all sections OF the United
States. and which is attracting wide attention.
IS known as the Distiers and Cattle Feeders
trust Western mon at the head of the
movement, and these are holding frequent con-
ferences with view of organizing combina-
ton still moro powerful than the Standard Oil
company and the American Cotton Oil Trust
The capital stock will not fall short of $40 O00-
600. and dividends of 6 to s per cent per
annum are expected. The majority of leading
distiiiers In the West have already sienifad
their intention or afhliating with the new com
bination. and the success of the movement is as
sured. j. B. Greepthut, the Monarch Distiiling
Jansen. Walsh & Co. and Maddux, Hobart &
Co., Of Cincinnati; Crawford Fairbanks,
Of Terre Hspte. and Warren A.
Corning, OF Cleveland. are a few
of the millionaire dstillers who are leading the
movement. All of the gentlemen have become
convinced of the absolute necessity of keeping
the production down to the actual demand
Heretofore this has been impossible During
the years 1880 and 1883 there very large
increase in the production of highwines, alcohol
aud spirits in the North western States and in
these years larger distlleries were built than
bad ever before been operated in this country,
resulting of course, in over-production. Dis
ton, and an association was formed which was
known the Western Export Association This
embraced between fifty and sixty, or nearly all
of the distilleries of the Northwest Their OBJ
ject to limit the production the require
ments of the trade. OF course it was necessary
to close down a large number of these distiller-
les, and a rule those of the greatest capacity
were only operated. Those that ceased opera
tions were paid from IL to Is cents q bushel
their capacity, which was about as much
earned by the disrilleries that were running
every year as much as they were really
worth, and 1t was necessary to pay them liber-
ally. otherwise they would have threatened
disruption OF the pool by resuming oper-
atoms. Even under these circumstances there
was found to be each year large surplus and
the only way TO get rid of that was by means Of
expectation to foreign countries. During this
period the pool paid bonus of from fifteen TO
twenty i've cents gallon on all alcohol thus
ported, which was a heavy drag upon them,
amounting as it did in some years from 5000 900
to 800, 900. Last winter many of the distillers
expressed dissatisfaction with the Western Ex-
port Association Some of the large distillers
in Peoria decided that a change was necessary
and since February last they have been organ
izing the trust company above referred to- So
pected, and have induced about 80 per cent. of
the dis.illeries to join. 1t is believed that those
still standing out must soon come in. 1t is the
intention of the trust to select from the
dstilers those that make the cheap
est spirits, and they will at their
full capacity, thus diminishing the cost
six years che distilleries that have been running
were doing so upon reduced capacity, say at
% to 30 per cent. Of their full capacity. This
naturally increased materially the cost Of pro-
duction. One of the principal causes of the
producing capacity of the distilleres being so
far ahead of the demand is found in the fact
that the large trade in alcohol which this coun-
try formerly carried on with Europe and South
America, well as Australia. has been er.ireiy
lost. few years since our exports of alcohol
amounted to from 300 600 to $50 900 barrels per
annum. Five years back we supplied Spain
with from 40, 600 TO 60. 600 barrels, and France
with $4,000 to 5000 barrels each year, while
South America required 20. 600 to sc. 900 every
twelve months. Owing to the commercial
treaty between Spain and Germany this i'm
mense trade has all been lost to u.s. The same
applies to France, which also enjoys favorable
treaty with Germany. In South America corn
is being grown about cheap as in tbs
United States, and many distillery plants havs
been exported TO tina: country. where alcohol ia
now being made cheap here. We now
have to depend upon the domestic markets and
our total exports of alcohol do net e5rued Is 600
barrels year. From these fscts waiskv men
infer that immense benefit is to b.,i ved from
the whisky trust. while it is ais. utged that it
is very dangerous the government and people
when the distiilers are not making profit, as
the chances for defrauding Uncle Sam are there
by largely increased. 1t is thought that 70 per
cent of the spirits to be made under the trust
will be made in PEORIA it is claimed they
have tho facilities for making whisky cheaper
than other sections of the country, it being a
large corn producing country, and coal being
worth about but TO cents per bushel Some
of the Chicago distilleries will, OF course be
operated well those in Cincinnati. and
possibly one in st. Louis. Many of the Peoria
distilleries cost from $3.50 600 to $500 000 There
are also valuable plants in other localities in the
West. Experienced whisky merchants say that
the formation of the whisky trust will have no
effect upon the market, and they generally favor
the proposed trust mainly because il ipsures q
steady market and uniformity of price In New
York are eight extensive rectifying establish
ments. They are the middle-men between the
producers and the jobbers. After the spirits are
produced at tho distilieries they are shipped
here, and refined and prepared for the re-
quirements of the jobbing trade. These rectd-
ers have invested in their business over ST GO0-
300. and transact an annual business Of $12 O0O,-
300. During the past five six years these rec
tiiers made a very insignificant profit, owing to
the competition here, and the same was the case
in other cities. Under the trust it Is understood
that their interests to be protected, and they
are consequently strongly in favor of the new